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APi Buys Carrier Global's Chubb Fire & Security Arm for $3.1 Billion Enterprise Value

07/27/2021 | 07:44am EDT

By Robb M. Stewart

APi Group Corp. has struck a deal to buy Carrier Global Corp.'s Chubb Fire & Security business for an enterprise value of $3.1 billion in a bid to transform itself into a top global safety-services provider.

The provider of safety, specialty and industrial services said the deal for the U.K.-based business, which has about 13,000 employees around the world and a network in 17 countries, includes a $2.9 billion cash payment and about $200 million in assumed liabilities and other adjustments.

Blackstone Group Inc. and Viking Global Investors will partner with APi in the acquisition, providing a combined $800 million investment in perpetual preferred equity.

Russ Becker, APi's president and chief executive, said the company had spent a lot of time evaluating several opportunities it considered transformative, as well as more traditional acquisitions.

"With the acquisition of Chubb, we see a tremendous amount of accelerated organic growth and margin expansion opportunities across our combined platform," Mr. Becker said.

The additional of Chubb will strengthen APi's recurring revenue and is expected to boost earnings and offer synergy benefits, the company said. Chubb had revenue of about $2.2 billion in the 12 months to March 31 and adjusted earnings before interest, tax, depreciation and amortization of about $213 million, it said.

APi said Blackstone has a global property portfolio and as a partner is expected to provide an opportunity to open new customer relationships in multiple markets.

Carrier Global said the sale of the business would allow it to focus on its core businesses and to re-allocate proceeds in line with its priorities, including funding organic and inorganic growth, dividends and share buybacks. Its global fire and security products business isn't part of the deal with APi.

It said the sale is subject to a consultation process and regulatory approvals, and is expected to close late in the final quarter of this year or early in the first quarter of 2022.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

07-27-21 0743ET

Stocks mentioned in the article
ChangeLast1st jan.
API GROUP CORPORATION -5.03% 20.56 Delayed Quote.13.28%
BLACKSTONE INC. -1.04% 133.63 Delayed Quote.106.19%
CARRIER GLOBAL CORPORATION -0.13% 55 Delayed Quote.45.81%
09/17API : Announces Closing of Public Offering of Common Stock
09/15API : Announces Launch of Public Offering of Common Stock (Form 8-K)
09/15API GROUP CORP : Entry into a Material Definitive Agreement, Other Events, Finan..
09/15API : Prices Public Offering of 19.8 Million Shares at $20.25/Share
09/15API : APi Group Announces Pricing of a $400 Million Public Offering of Common St..
09/13API : Launches $400 Million Share Offering; Shares Slide
09/13API : To Management and the Board of Directors of Carrier Global Corporation (Fo..
09/13API GROUP CORP : Other Events, Financial Statements and Exhibits (form 8-K)
09/13API : Announces Launch of Public Offering of Common Stock
09/09APi Group Corporation Announces CFO Changes
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Financials (USD)
Sales 2021 3 742 M - -
Net income 2021 75,8 M - -
Net Debt 2021 534 M - -
P/E ratio 2021 73,5x
Yield 2021 -
Capitalization 4 697 M 4 697 M -
EV / Sales 2021 1,40x
EV / Sales 2022 1,02x
Nbr of Employees 13 000
Free-Float 89,1%
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Russell A. Becker President, Chief Executive Officer & Director
James E. Lillie Co-Chairman
Martin E. Franklin Co-Chairman
Tom Bauer Chief Information Officer
Paul Myners Independent Director
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